Sun Tv Network Limited · NSE:SUNTV
Sun Tv Network — Citi India Investor Conference 2016
36 slides from Sun Tv Network's conference presentation, Jun 7, 2016
Slide 1: The Sun never sets in the South!
The Sun never sets in the South ! JUNE 7, 2016 1
Slide 2: Forward-looking statements disclaimer
Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the Directors and Management of Sun TV Network Ltd. (STNL) about its business and the industry and markets in whic
Slide 3: Business segments: TV, FM radio, movies, IPL franchise
¡ Television Broadcasting ¡ FM Radio Broadcasting ¡ Movie Distribution/Production ¡ SunRisers – Hyderabad – IPL Franchise 3
Slide 4: Sun TV Network Ltd group structure
Sun TV Network Ltd (Broadcasting , Production, Entertainment) 97.78 % 59.44 % subsidiary subsidiary Kal Radio Ltd (Radio) South Asia FM Ltd (Radio) 18 FM Radio licenses 23 FM Radio licenses Focused on southern cities Focused on Northern, Eastern & Western parts of the country Divisions of STNL Strat
Slide 5: Channels by state and language
State / Language Andhra Pradesh & Tamil Nadu / Telangana / Karnataka / Kerala / Channels Tamil Telugu Kannada Malayalam General Entertainment Movies News Music Kids Comedy High Definition Life Action Rest of India 5
Slide 6: India Overview
India Overview
Slide 7: India the top investment destination in H1 2015
¡ India the top investment destination in H1 2015, beating China ¡ This is despite sharp decline in FDI into emerging markets ¡ FDI inflow has more than doubled over H1 2014 i.e. a growing trend (Bn USD) FDI into India 35 30 25 20 15 10 5 0 H1 2014 H1 2015 Source: ft.com 7
Slide 8: Southern states key statistics
Tamil Nadu Andhra Pradesh + Telangana Area in Sq. Km (Rank): 130,058 (11) Area in Sq. Km (Rank): 275,045 (4) Population (Rank): 72 mn (7) Population (Rank): 84.6 mn (5) Urbanization%: 48% Urbanization%: 33% GDP in USD (Rank): 149 B (Top 5 states) GDP in USD (Rank): 145 B (Top 5 states) FDI Inflows (
Slide 9: Television Broadcasting in India
Television Broadcasting in India
Slide 10: Pay TV in India witnessing strong growth
¡ Pay TV in India witnessing strong growth and is likely to keep growing organically, since it is only at 60% penetration1 ¡ Bucking the stagnant / declining trend in linear pay TV in developed nations (India) 1 – Number of Pay TV households in India – 149 Mn, Number of total households in India as
Slide 11: TV advertising and distribution market outlook
2015P (India) 2019P (India) v Accounts for ~ 40% of total ad-spends in India driven by Hindi & Regional ad-spends TV Advertising spends v Entertainment genre continues to be the TV Advertising spends largest ad spend driver followed by news and Rs 175 bn Rs 299 bn sports v Emergence of “Targeted adv
Slide 12: South India viewership, ad market and subscription potential
Enviable Viewership Share ¡ South Indian Channels accounted for ~30 -32 % share of total viewership Fast growing Ad market v Addressable ad market pegged at Rs ~60 billion, growing at a fast pace v South Indian Channels enjoy significant share of total ad revenues v Regional TV in the South strongly
Slide 13: Households and channels by southern state
Tamil Nadu Andhra Pradesh & Telangana Total Households: 17.7 Mn Total Households: 20.9 Mn C&S Households (Penetration): 15.9 Mn (90%) C&S Households (Penetration): 14.8 Mn (71%) Major Active Tamil Channels: 42 Major Active Telugu Channels: 41 GEC: 16 GEC: 8 Movies: 6 Movies: 4 Music: 7 Music: 3 News
Slide 14: Sun TV Network's TV Broadcasting Business: Present
Sun TV Network’s TV Broadcasting Business: Present
Slide 15: Largest TV Network in South India
¡ Largest TV Network in South India; also the largest regional TV Network in India § Sun TV is the most watched channel in India today1 § Largest in South India by penetration, viewership & ad revenues2 § Dominant market share in each of the states § Airs assortment of fiction and non-fiction conten
Slide 16: Committed to staying ahead of the curve
¡ Committed to staying ahead of the curve § Innovation and leadership ▪ One of the first Regional GE channels in country to adopt HD ▪ Forged early partnerships with OEMs to pre-load Sun TV app on their devices § Segmenting the addressable market, ahead of digitization ▪ Established presence across
Slide 17: Advertising Revenue
¡ Advertising Revenue Ad market size Language (Rs bn) § TV remains the medium of choice for Tamil 30.0 large advertisers in India Telugu 20.0 Kannada 6.0 § Increasing trends of higher ad spends in the South, driven by high per-capita Malayalam 4.0 income in South India Total 60.0 § Leading to consis
Slide 18: Subscription revenue share from South India
Over 60% share of Subscription revenue from South India Television C&S Households Language households households accrues to Sun TV Network (mn) (mn) (mn) Tamil 17.7 16.4 15.9 Telugu 20.9 15.1 14.8 v DTH penetration is increasing at rapid pace Kannada 13.5 10.0 9.9 v Revenue opportunities from the So
Slide 19: Paid subscriber base in overseas markets
Paid subscriber base of over ~0.6 mn in overseas markets Rogers Cable ,Bell & Channel Live - IPTV Sun TV Network Europe Limited, Yupp TV Echostar –Dish, Channel Live , IPTV, Yupp TV, VU Clip, Bom TV, Vision Myanmar – Shwe Media, Google Ireland UAE – Pehla Thanlwin Media Malaysia -Measat Sri Lanka –
Slide 20: Sun TV Network's TV Broadcasting Business: Future
Sun TV Network’s TV Broadcasting Business: Future
Slide 21: Digitization and growth in Pay TV ARPUs
¡ In mature South Indian Markets, twin opportunities: Digitization + Growth in Pay TV ARPUs § Digitization will grow the addressable TV audience, improving subscription revenue realization § India’s Pay TV ARPU among lowest in the world; Increase in ARPUs will further reduce dependence on advertisin
Slide 22: Government-mandated digitization timelines
¡ Government of India has mandated digitization of TV distribution systems in India with the following timelines Deadline for Estimated homes Phase Cities Covered digitisation Total South 4 Metros 1 (New Delhi, Mumbai, Kolkata, 30/10/2012 ~ 12 mn Chennai ~ 2 mn Chennai) Bangalore /Mysore / 2 38 Citi
Slide 23: FM Radio Broadcasting
F M Radio Broadcasting
Slide 24: FM radio subsidiaries and stations
¡ Two subsidiaries § Kal Radio Limited and South Asia FM Limited ¡ 49 stations operational § 7 stations under Brand Suryan FM in Tamil Nadu § 42 stations under Brand Red FM in the Rest of India ¡ Strong Revenues from the Metro stations § Metro stations account for 50% of total Radio Revenues ¡ Well
Slide 25: India's Largest FM Radio Network
India’s Largest FM Radio Network With a Pan India Footprint og hpur® “Uaipur Pe ‘aj amundri | aywada Thiruvananthapuram ° a 25
Slide 26: FM radio stations by region
Tamil Nadu, Andhra Karnataka & Pradesh & Telangana West - 10 North & East - 17 - 13 Kerala - 9 • Bangalore • Ahmedabad • Allahabad • Chennai • Cochin • Aurangabad • Asansol • Coimbatore • Bhopal • Hyderabad • Gulbarga • Jaipur • Bhubaneswar • Madurai • Kannur • Jodhpur • Delhi • Pondicherry • Kozhik
Slide 27: Radio growth drivers
¡ Increasing share of Radio in total ad pie § Current share of Radio in total ad pie at ~ 4.5% compared to global average of ~8% ¡ Cost effective medium § SMEs and local advertisers to drive growth ¡ Share of regional advertisers to increase § Share to increase from current ~ 40% to global average o
Slide 28: Business leadership summary
¡ TV Broadcasting § India’s No 1 TV Broadcaster ¡ F M Radio Broadcasting § India’s largest private FM player ¡ Movie Distribution / Production § One of India’s largest Corporate Movie Distribution / Production houses ¡ SunRisers – Hyderabad – IPL Franchise § An opportunity to blend the India’s most
Slide 29: Financials
Financials
Slide 30: Standalone financial summary
(Rs Crores) FY 2015 - 16 FY 2014 - 15 FY 2013 – 14 FY 2012 – 13 FY 2011 – 12 FY 2010 – 11 Advertising Revenue 1,210.71 1,136.09 1,067.04 1,049.67 945.42 970.20 Telecast Fees 110.03 114.64 127.34 143.61 163.96 153.74 Subscription 958.84 875.72 769.45 615.10 579.93 571.26 (Analogue + DTH + Overseas) O
Slide 31: Revenue, EBITDA, PAT, ROCE and RONW
EBITDA (Rs. bn) Total Revenues (Rs bn) 81 (%) 20.0 80 81 30.0 CAGR ~ 4.56 % 21.0 25.0 24.0 15.0 15.6 76 18.2 22.4 19.2 76 20.0 17.6 14.0 10.0 13.8 72 14.6 71 15.0 70 16.1 71 10.0 5.0 17.1 5.0 0.0 66 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA EBITDA Margin (RHS) (Rs bn) Pr
Slide 32: Consolidated financial summary
(Rs Crores) FY 2015 - 16 FY 2014 - 15 FY 2013 – 14 FY 2012 – 13 FY 2011 – 12 FY 2010 – 11 Advertising Revenue 1,380.51 1,289.35 1,194.38 1,155.46 1,029.42 1,053.18 Telecast Fees 110.03 114.64 127.34 143.61 163.96 153.74 Subscription 958.84 875.72 769.45 615.10 587.20 578.03 (Analogue + DTH + Oversea
Slide 33: Consolidated revenue, EBITDA, PAT, ROCE and RONW
EBITDA (Rs. bn) Total Revenues (Rs bn) (%) 20.0 81 30.0 78 CAGR ~ 5.04 % 77 25.0 15.0 25.7 15.8 76 20.0 24.0 20.1 22.2 10.0 14.1 73 18.5 19.2 14.0 15.0 70 15.1 17.7 69 71 10.0 5.0 68 16.8 5.0 0.0 66 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA EBITDA Margin (RHS) (Rs bn) Pr
Slide 34: Income, advertising income and PAT growth
Total Income grew at CAGR of 13.28 % Advertising Income grew at CAGR of 12.66% (Rs. Crs) 3000.0 1400.0 2511.3 1210.7 2331.5 1136.1 2500.0 2176.0 1200.0 1049.7 1067.0 1970.5 970.2 945.4 1831.6 1872.6 1000.0 2000.0 788.7 1437.5 800.0 1500.0 1091.5 572.8 926.0 600.0 466.6 1000.0 400.0 500.0 200.0 0.0 0
Slide 35: PAT and dividend payout
Rs. Crs 900 PAT Dividend 867.2 85% 800 772.2 737.2 735.2 716.9 694.7 683.3 700 72% 63% 61% 52% 64% 600 567.4 529.3 500 437.1 61% 435.1 435.7 438.0 401.5 400 344.9 26% 300 200 115.3 100 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Dividend Payout = Dividend + Dividend Distribution Tax 35
Slide 36: JUNE 7, 2016
JUNE 7, 2016 36